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Professional ethics

preeti (student) (143 Points)

11 January 2010

Q. Can a Chartered Accountant in practice accept original professional work emanating from the client introduced to him by another member?

A. No, a Chartered Accountant in practice should not accept the original professional work emanating from a client introduced to him by another member. If any professional work of such client comes to him directly, it should be his duty to ask the client that he should come through the other member dealing generally with his original work.

Can anyone please explain the above stated QUESTION AND ANSWER esp the part in RED.

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8 Replies

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 11 January 2010

Preeti, is this Q & A generated by u or some site or some book or from some other stuff.....???

I'm asking this, coz i've never heard any of such things.....

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Amir (Learner) (4016 Points)
Replied 11 January 2010

Dear Preeti,

As far as I know the meaning of the word "ORIGINAL" signifies the work which was initially/originally handled by ANOTHER MEMBER..

Suppose :- There r 2 CA's Mr. A & Mr. B....Now, Mr. X (client) have been taking the services of Mr. A to file his ITR...

Now Mr. A introduces Mr. X to Mr. B(friend of Mr. A),

Next Year Mr. X approaches Mr. B to file his ITR , now it shall be the duty of Mr. B to ask Mr. X to get his ITR filed through Mr. A.

2 Like

niki_1079 (CA Practice ) (279 Points)
Replied 11 January 2010

It could be understood thro an example. Like "A" & "B" are two members (CA) and known to each other. "A" introduced "B" to "Mr Client". Usually "A" look after all the financial works of "Mr Client". After meeting with "B" "Mr Client" contacted him (B) for one of his financial work. I "B" accepts the work then "B" would be, according to CA Act, guilty of Professional Misconduct. "B" shold not accept the work from "Mr Client".

If any professional work of such client comes to him directly, it should be his duty to ask the client that he should come through the other member dealing generally with his original work.

The above lines means if "Mr Client" comes to "B" directly, without knowledge of "A", for some work then it is the duty of "B" to ask "Mr Client" that he should come through "A" who is dealing his financial work generally. If "A" asks "B" to handle the work offered by "Mr Client" then only "B" should accepts the work from "Mr Client".

I hope i have cleared ur doubt....

2 Like

preeti (student) (143 Points)
Replied 11 January 2010

Thanks for the answers. My doubts are clear now. And for Dhirav, I have taken this Q & A from a file shared to me by a friend. So, even I don't know the original source. Thanks to all anyway.